STORY FROM: Drugs & Medical Devices

Insurer Sues Compounding Pharmacy over Coverage for Fungi-Contaminated Injection Claims

OCALA, Fla. — Evanston Insurance Co. has filed a federal lawsuit requesting a ruling that it has no obligation to defend a Florida-based compounding pharmacy against claims by individuals who were allegedly infected by fungus-contaminated injections.

The lawsuit, filed Oct. 26 in U.S. District Court for the Middle District of Florida, alleges that coverage of at least seven claims and two underlying personal injury suits against Franck’s Lab Inc. is barred by a mold and fungi exclusion contained in policies it sold the company and its related entities.

Evanston says it wants the federal court to declare that it has ...

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